Most Lenders are giving customers cash backs to entice customers to refinance their loan with the bank. The cash back is a cash payment from $2000 up to $6000 deposited into your bank account after your loan settles. This meant to cover any costs of refinancing your loan, however you can use this money for whatever you like.

Free money, is there a catch?

There is no catch with the cash back, but you should exercise caution when considering refinancing your loan, as the cash back may not be worth it financially.

Typically, a mortgage term is 30 years, but the average life of a mortgage is 4 years (due to the property being sold, or the loan is refinanced before the full term), but it’s best to consider your long-term savings rather than just focusing on the cash back amount. e.g., a lender that offers a lower interest rate and no cash back may make more financial sense compared to a lender offering a higher interest rate and a cash back.

Cash back offers are available for fixed rate loans as well as variables loans. Furthermore, most lenders will pay a cash back for owner occupied loans and investment loans.